You own a building that has two possible uses: a grocery store, and a clothing store. The value of the building in each use is $ $7,000; and $10,000, respectively. You decide to open a hardware store. What is the opportunity cost of using this building for a grocery store?

The Opportunity cost to a firm in using any input is what the input could earn in its best…

Answered: You own a building that has two…

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter5: Consumer Choice: Individual And Market Demand

Section: Chapter Questions

Problem 3TY: Emily buys an air conditioner that costs $700. Because the air in her home is cleaner, its use saves...

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You own a building that has two possible uses: a grocery store, and a clothing store. The value of the building in each use is $ $7,000; and $10,000, respectively. You decide to open a hardware store. What is the opportunity cost of using this building for a grocery store?

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